corporate and professional updates 23rd JUNE 2018

corporate and professional updates 23rd JUNE 2018

Direct Tax :

• Delhi ITAT rules that assessment made u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (‘the Act’), on a Cyprus based Company (assessee, which had voluntarily wound up in May, 2013) for AY 2012-13, not a nullity, despite assessee being non-existent as on the date of issuance of order in 2017, follows Gujarat HC ruling in Sumantbhai C. Munshaw;
  [TS-319-ITAT-2018(DEL)]
• Mumbai ITAT upholds disallowance u/s. 40(a)(i) for the entire amount of testing charges paid by assessee-company to German party without TDS during AY 2012-13; Rejects assessee’s stand that in view of CBDT circular 3/2015, only appropriate portion of such sum which is chargeable to tax under the Act shall be disallowed u/s. 40(a)(i);[TS-317-ITAT-2018(Mum)]
• A tax benefit claimed by a taxpayer in his revised income-tax return cannot be denied outright by an income-tax (I-T) officer merely because the revised return has been filed after issue of notice – ITAT, Mumbai inMahesh Hinduja.
• Addition u/s.68 – gift – When however, large amounts are stated to have been gifted, that too by a person having no blood relation with the assessee, the question of genuineness of the gifts would require closer scrutiny – Tribunal has made superficial observations and mechanically accepted the genuineness of the gifts – CIT Vs. Mukesh M Sheth (2018 (6) TMI 1056 – Gujarat High Court).

• Taxpayer can file revised return after notice issued by Income Tax Department- ITAT. However, the revised return needs to be filed within the time limits set out in Income Tax Act.

• The income tax department has proposed clear-cut timelines by which excess amount assessed by Transfer Pricing Officials over what was declared by associated enterprises of multinational corporations has to be brought in India. These timelines relate to advance pricing agreements and mutual agreement procedure.

INDIRECT TAX

• Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.
• GST has been spoken of as a panacea for high fuel prices but the structure in works would ensure rates remain almost at same levels. A peak tax rate of 28% plus states levying some amount of local sales tax or VAT on petrol and diesel.
• CBIT&C modifies the procedure for interception of vehicle for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular, dt.13.04.2018 – Circular No.49/23/2018-GST, dt.21.06.18.
• GTA Service – The document issued by District Supply Officer conveying the goods transported cannot be construed as a consignment note – Gade Transport Vs. CCE (2018 (6) TMI 1010 – CESTAT Mumbai).
• Transporter registered in multiple states with same PAN may apply for common enrolment no. for eway bill by filing GST ENR-02, using any GSTIN.

FAQ on E-WAY BILLS:

• Query:Whether e-way bill is required for intra -State movement of goods?
• Answer:At present e-way bill is required only for inter-State movement of goods. For intra-State movement of goods the requirement for e-way bill will be introduced in a phased manner, for which rules will be notified by respective states separately.

MCA UPDATES

• MCA issues The Companies (Significant Beneficial Owners) Rules, 2018; &, The Companies (Management & Administration) 2nd Amendment Rules, 2018. MCA Ntfcns of 13.06.18.
• MCAacross India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013. Public Notice in Form No. STK — 5, Pursuant to sub-section (1) and sub-section (4) of section 248 of the Companies Act, 2013 and rule 7 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 has been issue by the Registrar of Companies, Delhi to 31,250 Companies.
• The Registrar of Companies across India have initiated the action (II Stage) against the non working companies for striking off of all such companies under Section 248(1) of the Companies Act, 2013.

SEBI UPDATES

• SEBI has issued a circular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies. SEBI has referred to enforcement of its Orders debarring entities/individuals from accessing the capital markets and / or restraining from holding position of directors in any listed company.
• SEBI has issued acircular w.r.t Enforcement of SEBI Orders regarding appointment of Directors by listed companies

RBI Update:

• The Reserve Bank of India has imposed a monetary penalty of Rs. 50,000/- (Rupees fifty thousand only) on City Co-operative Bank Ltd., Hassan, in exercise of the powers vested in it under the provisions of Section 47 A (1) (c) read with Section 46 (4) of the Banking Regulation Act, 1949.

OTHER UPDATES

• Indian Valuation Standards as issued by the Institute of Chartered Accountants of India effective for the valuation reports issued on or after 1st July, 2018.

KEY DATE:

• QUARTERLY RETURN FOR REGISTERED PERSONS WITH AGGREGATE TURNOVER UP TO RS. 1.50 CRORES: GSTR-1 :-31. JULY 2018

• DUE DATE FOR FILLING GST TRAN-2- 30.06.2018

• More read:

  • Key characteristics for Auto-population of e-invoice

  • Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme